Breakeven On The Horizon For Bloom Energy Corporation (NYSE:BE)

Stock Analysis

Bloom Energy Corporation (NYSE:BE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. With the latest financial year loss of US$301m and a trailing-twelve-month loss of US$294m, the US$3.2b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Bloom Energy will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Bloom Energy

Bloom Energy is bordering on breakeven, according to the 20 American Electrical analysts. They expect the company to post a final loss in 2024, before turning a profit of US$116m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 73% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Bloom Energy's upcoming projects, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one issue worth mentioning. Bloom Energy currently has a debt-to-equity ratio of 103%. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

There are key fundamentals of Bloom Energy which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bloom Energy, take a look at Bloom Energy's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

What are the risks and opportunities for Bloom Energy?

NYSE:BE

Bloom Energy

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally.Show more

Rewards

Trading at 9.3% below our estimate of its fair value

Earnings are forecast to grow 72.67% per year

Risks

Shareholders have been diluted in the past year

Significant insider selling over the past 3 months

Has less than 1 year of cash runway

Share Price

Market Cap

1Y Return

Further research onBloom Energy

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally.

High growth potential with mediocre balance sheet.